ResMed Inc (ASX: RMD) shares are climbing higher this week.
At the time of writing, the shares are up around 3% for the day, and changing hands for $28.77 a piece.
The increase has barely dented the huge losses shed over the past year, however. At the time of writing, the shares are down around 21% for the year to date and are 31% below trading levels 12 months ago.
Today's uptick is good news for investors. But it begs the question, is the increase temporary? Or is there a chance that we could see a meaningful rebound out of ResMed shares this year?
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What happened to ResMed shares this year?
The ASX healthcare sector overall has been under immense pressure throughout 2026 so far, as macroeconomic pressures, rising inflation, higher cost of living, and regulatory uncertainty has created a sector-wide downturn.
ResMed was one of many ASX healthcare shares caught up in the sell-off.
And the sleep disorder treatment company's third-quarter earnings update in May didn't help either. ResMed delivered an 11% (8% in constant currency) increase in revenue to US$1.4 billion, driven by increased demand for its portfolio of sleep devices, masks, and accessories.
The result came in significantly softer than expected, and the share price sell-off accelerated.
ResMed shares bounced higher in early July amid a sector-wide healthcare rebound, but they quickly tumbled lower ahead.
Is a rebound ahead?
Sleep disorders require long-term management, and as a global leader, ResMed has a powerful position in a large (and growing) market.
ResMed's revenue has continued to grow at a healthy pace, and its margins have continued expanding, and the company is also able to generate strong free cash flow.
But I'm also concerned that the recent boom in interest for GLP-1 weight-loss drugs could reduce the number of people needing treatment for sleep disorders over the long term.
I think the ASX 200 healthcare share is now oversold and below fair value.
But as for whether the beaten-down healthcare shares can rebound to the all-time high seen in mid-2025, I'm unsure.
Let's find out what the experts think.
Here's what brokers tip for ResMed shares next
According to Market Index data, brokers are divided between buy and hold ratings on ResMed shares. But the $88.21 average target price now implies a huge 208% upside at the time of writing.
TradingView data shows brokers are equally optimistic, but forecasts are lower.
Out of 31 analysts, 19 have a buy or a strong buy rating on ResMed shares. Another 10 rate the stock as a hold. The average $37.58 target price implies a 30% upside ahead. Whereas the $46.92 maximum target price implies the shares could climb up to 63% higher, at the time of writing.
Ord Minnett has a buy rating and $36.60 target price on ResMed shares. The broker said the company's move to sell its MatrixCare unit was strategically sound.
The analyst team at Morgans has a buy recommendation and a $41.72 target price for the ASX healthcare stock. The team said it views ResMed's fundamentals as sound, with consistent execution, strong cash generation, and structural growth tailwinds from expanding diagnosis and resupply.
